** LEAP Forward to 2011**
We now know that the economy has been in a recession since December 2007.
Housing prices have plunged. Nearly 3 million jobs have been lost. The S&P 500
plummeted more than 40% in 2008.That said it's important to understand that this
still appears to be a long, painful recession and not another depression.
With that in mind, it's worth remembering that the stock markets often
anticipate recoveries. So even though the economic numbers and corporate
earnings are horrific, investors usually look past all that.
As a market watcher/options trader for over 30 years, in my opinion, most of the
damage has been done. Between the monetary stimulus that’s coming in a near
flood of money and the credit markets behaving a little better and loosening up,
it should set the stage for a sustained rally. That means hundreds of the best
companies in the world are now or will soon be (after second/third quarter
earnings) available at prices NOT SEEN in a generation.
This is the ideal set up for long term options (LEAPS) to generate HUGE profits
from a recovery, along with a chance for investors in self directed retirement
accounts to repair some of the damage from the sell off.
WHY LEAPS?
While short term trading will remain volatile, well timed long term options
positions offer the stability of time, along with the inherent leverage in
options. It would not be surprising to see quality stocks double, and then
double again from these depressed levels. That kind of action offers enormous
profit potential in long term options.
* TRADING STRATEGY *
History shows that market recoveries usually come in sector waves. Our mission
will be to identify sector leaders and ride the wave until it tops out, then
moving on to positions showing signs of upside momentum. Our trading vehicle
will be two year options in most cases, along with a combination of one and two
year contracts if the price is right. Unlike short term options which we usually
buy and sell at market using Black Scholes as our model.
Every LEAP recommendation will be posted with a limit price (unless it’s being
offered at fair value), if we can’t get in at our price there will be other
candidates. In addition, every option will have a GTC trailing stop in place
that can be adjusted along the way. Using limits and stops eliminates the need
to be at your computer all day. Auto-Trade is also available through
optionsXpress, thinkorswim, TradeKing and Optionshouse.
Position plays and stop adjustments will be sent by Email, along with an updated
open position box every weekend..
MEMBERSHIP LIMITED * SPECIAL OFFER *
Membership will be capped at 1000, with annual fees of $249.00. Be one of the
first 250 to join and you can come on board for only $79.00 every 3 months.
Talk to Joe, we are publishers not investment advisors or money managers. As
such are not permitted to give members individual investment advice. However if
you would like to talk to me "BEFORE" joining, I can be reached at (561) 622
2777 during normal business hours EST. That is a direct line to my desk, we do
not use salespeople. Or
Read our FAQ LEAP Section
Here.
To sign up
Click Here:
TRADE WELL AND PROSPER,
Joe Lesko
Chief Investment Strategist
Option Principal Publishing
http://www.optionprincipal.com
